Readers can subscribe to The Morning Risk Report here. Follow us on Twitter at @WSJRisk.

Bribery:

Mike Lucas

A Chicago-area tutoring business used strip-club visits, cruises and cash to bribe education officials around the country, prosecutors said in an indictment. The company didn’t appear to be contacted. (NY Daily News)

An Indonesian court jailed the former chief energy regulator for seven years for accepting more than $1.5 million in bribes. The KPK said the investigation is continuing. (AFP, Reuters, WSJ)

Li Chuncheng, a former senior Chinese official, is suspected of bribery and abuse of power and was being transferred to judicial authorities after his expulsion from the Communist party. He couldn’t be reached. (WSJ)

The FCPAProfessor analyzes the Wal-Mart compliance report. The FCPAmericas blog provides Venezuelan and Chilean perspective on U.S. and U.K. anti-bribery law.

The Department of Energy issued recommendations for how the energy industry and its suppliers should build cybersecurity protections into power delivery systems. (The Hill)

Members of the Senate Intelligence Committee are drafting cyber legislation that would enable companies to share threat data with federal agencies without fear of getting sued, officials said. (Washington Post)

Hackers in Iran are a rising cyber-threat to the U.S., a report found. (Christian Science Monitor)

Money Laundering:

New court papers offer a rare glimpse of how a reputed Moscow-based mob boss indicted last year in a $100 million sports betting and money laundering ring does business. (NY Daily News)

The Swiss units of Goldman Sachs Group Inc.Morgan Stanley agreed with U.S. authorities to hand over potentially incriminating details about how they might have helped Americans evade taxes, sources told WSJ.

Global Witnesses says a London meeting on recovering Ukrainian stolen assets has to consider banks’ role in the looting.

Sanctions:

How did a Turkish crime ring help Iran exploit a loophole in the West’s sanctions regime? A police report alleges the purported crime network bribed officials in part so it could maintain control of the business. Turkey’s prime minister called the police investigation a foreign-orchestrated plot without legal merit. (Reuters)

Western sanctions on Russia are giving oil companies headaches, even though they don’t completely nail the energy sector. U.S. companies are being cagey, as ExxonMobil’s $900 billi0n Arctic prize is at risk; the company declined to comment. The chief executive of Statoil ASA said it was too early to say if the sanctions against the head of Russian oil company Rosneft would threaten the companies’ joint ventures. (NY Times, WSJ Moneybeat, Foreign Policy, BuzzFeed, Bloomberg, Dow Jones Newswires)

China objected to U.S. sanctions imposed on eight companies it said a Chinese businessman used in the alleged sale of ballistic missile parts to Iran. (WSJ, Reuters)

Tehran said it was canceling a $2.5 billion deal with China National Petroleum Corp. for the development of a giant Iranian oil field and talks with Western powers have lessened the need for alternatives due to sanctions. (WSJ)

General Anti-Corruption:

A former SEC official, fined in 2012 for violating conflict-of-interest rules, was also involved in numerous similar instances of manipulation, an investigation found. Through his lawyer, the former official declined to comment. (Vice)

Under the ASU, inventory is “measured at the lower of cost and net realizable value,” which eliminates the need to determine replacement cost and evaluate whether it is above the ceiling net realizable value or below the floor. The FASB did not amend other guidance on measuring inventory, such as the LIFO, FIFO and average cost method. In addition to reducing complexity, the proposal would make U.S. GAAP more comparable to IFRS.

Risk & Compliance Bureau

About Risk & Compliance

Risk & Compliance provides news and commentary to corporate executives and others who need to understand, monitor and control the many risks that can tarnish brands, distract management and harm investors. Its content spans governance, risk and compliance and includes analysis of the significance of laws and regulations, the risks inherent in global expansion and the protective moves taken by companies.